"newsline." i'm k.c. catherine kobayashi in tokyo. the electrical grid in india collapsed. 600 million people were without power in the heat of summer many

for the second straight day. the electricity went out again on tuesday night, affecting 20 states and union territories including new delhi. trains came to a halt and street lights went out. it left 200 coal miners trapped underground when elevators failed. l we rescued. spokespersons for the power grid corporation says that many states overdrew electricity and it led to a cut in supply to all people receiving power from the same grid. another one hit the day before. power failures affect wide areas of the country from time to time. but back to back outages are unusual even in india. the government and utilities are facing criticism. electricity consumption is rising rapid alg wit

india's economic growth. a u.s. defense secretary says egypt's new president is his own man. leon panetta declared his support for mohamed morsi when they met in cairo. morsi assumed the presidency in june. he was meeting with the defense secretary for the first time. panetta is believed to have reminded morsi to respect egypt's peace treaty with israel. that has been a diplomatic sticking point. the muslim brotherhood takes a tough stance on israel. pa net that pledged support for the egyptian military up to $1.3 billion a year but it comes with a condition. egypt must maintain peaceful relations with israel. egyptian officials say that morsi has sent a letter to israel pledging to restart

middle east peace talks. the office of the israeli president says that t letters suggests that egypt wants to work for security and stability for all people in the region. israelis have been concerned about how relations might change. but morsi's letter suggests he will respect the peace treaty. still, many israelis view morsi with suspicion. he has been holding discussions with hamas. china's communist party leaders pledged to give priority to stable growth. many chinese are increasingly concerned about the flagging domestic economy. senior party members met in beijing on tuesday to discuss economic policy. president hu jintao said that international monetary fluctuations are making economic

growth difficult. they agreed to maintain a policy of dampening housing prices in check and agreed to jump start china's economy through public spending and monetary easing. they want to develop the service sector. china's economy in the april to june quarter grew 7.6% from the same period last year. the growth rate fell below 8% for the first time in about three years. bankers are pointing fingers in a banking scandal. what is going on there? >> the scandal may have started in the uk but the latest turn of events underscores how global this problem is. we're finding out that germany's largest commercial lender deutsche bank was involved in the manipulation of libor interest rates.

an internal document says that employees took part in the rigging of money market interest rates. the bank denied systematic wrong doing and dressed that managers were not part of fraudulent activities. deutsche bank will work with the authories to fin out how the grp of employees manipulated libor rates and investigate whether more of the workers took part. the bank will release the results this year. libor is a benchmark for a wide range of other rates. in june barclay's was ordered to pay very than $400 million in fines for manipulating lobor. financial authorities in europe and the u.s. are propering their banks to see if they were involved in the rigging scandal. focus is now on whether other lenders involved will have to pay huge fines or compensate

for damages. swiss banking giant ubs says it took a huge loss from the facebook initial public offering due to glitches in the nasdaq system. the glitches made it impossible to confirm trading for several hours when the social networking giant was first listed on the nasdaq market in may. this made the bank buy more shares than it needed. ubs suffered a loss of $360 million because the price plunged following the ipo. the loss pushed profit lower for the april to june quarter. several financial institutions have taken legal action against nasdaq. the swiss bank is also to file a lawsuit. time to get a check on markets now. the u.s. stock prices ended

lower after a choppy lower ahead of policy meetings. the dow joins industrial average was down a half percent at 13,008. let's go to the tokyo stock market. there seems to be a lot of market focus on central banks. >> yes, indeed. a lot of focus on the federal reserve bank and the european central bank. a lot of investors think that the fed may hold off this time because there was improvement in the housing sector data and consumer confidence in the u.s. which rose for the first time in five months. slightly improving data there which the feds should be taking in before it makes a decision. let's look at how that is translating into the opening levels this wednesday. both indexes trading lower

there. topix at 729. with markets looking at the fed and theecb, japan is in full swing here as far as earnings reports are concerned across many sectors. we had a lot of reports yesterday. 60 companies reporting yesterday including panasonic, honda, and toshiba and others will get the market reaction and stock price movements of those in later reports. but let's not forget that one of the biggest thorn in the sides of japanese companies reporting earnings in the last quarter has been the stronger yen. t's lo at the levels this morning as well for the dollar/yen and the euro/yen. cur certainsies playing a part. the yen is strong against the dollar. if the fed moves for growth it would strength the yen.

euro/yen, 96.03 to 08. if there is no solution to the eurozone debt crisis the euro may weaken as well. a lot of focusn the currencies. you mentioned earnings. break down the numbers for us. >> there were 60 companies yesterday. i'll break down some of the key blue chips. let's start with honda. honda said it will keep its full year forecasts -- that's going to remain unchanged despite the higher yen. and also reflects the rebound for honda and a lot of automakers from the march 11, 2011 disaster last year and reported a four-fold gain in profits. pasonic swung to a profit for the fiscal first quarter also helped by cost cuts in the tv business and will focus on home appliances. that is just a couple there. let's not forget more earnings

later today as well. >> keeping you busy as well. thanks a lot. now as he told us the nikkei and the topix are down 1% this morning. let's see how other asian markets are doing. experts from the international atomic energy agency are getting down to work at a nuclear plant in northern japan trying to find out.the onagawa facility weathered the

impact of the earthquake and tsunami. >> reporter: the iaea experts are turning their attention to the seawall behind me. they are interested in learning how its position and design helped protect the plant from the tsunami. the experts are focused on the seawall but they are looking at several systems at the plant. they check the heat exchanger at one reactor and the cooling system that was flooded by the tsunami. the head of the iaea's international seismic safety center sujit samaddar is leading the team. >> i was at fukushima daiichi and now i'm here. it's just begun. we are trying to figure out the difference. we'll see. as we look at things we'll have

an understanding of what could be the differences. >> reporter: iaea experts assessed the fukushima daiichi plant in may of last year and checked on progress of decontamination progress there. they will go through all three reactors to see how they performed during the disaster. they plan to release the findings when they finish their work next week. the shanghai international film festival is coming of age. it's the kind of international attention the government is keen to attract. but one film this year got little exposure.

>> reporter: the 15th shanghai international film festival took place. the events showcased 2,000 films from china and overseas. organizers invited a host of film directors and actors from abroad. the chinese government is keen to develop the festival into a world-class event. many films got top billing in state-run media. but this screening was not one of them. it took place in the small cafe. the film is a documentary. it tells the story of villagers campaigning against the dam project. the title is "waking the green tiger." chinese director shi lihong shot the film over a period of five years. the setting is the province in southern china.

the film focuses on a village on the upper reaches of the yangtze river. one day ordering everyone in the village to relocate. they're going to build a dam. people are suddenly facing the loss of homes and livelihood. the film is a record of how the villagers respond. [ speaking foreign language ] >> reporter: people in the villages here have been evicted. before long, a protest movement is born. [ speaking foreign language ]

>> reporter: simply put, the film is about an awakening of people realizing they have to speak up or lose everything. and it has a happy ending. officials scrap the dam project. civic action is a sensitive subject in china. officials order the director to cut some scenes from the film. afterwards, members of the audience peppered shi with questions. they seemed moved of the story of villagers speaking out against the injustice. >> translator: this movie really gives people hope. >> translator: i thought that the government's decision was final. i was surprised that civic action can bring change. >> reporter: film ornizers gave the film almost no publicity. as a result, the turnout was low.

but shi feels just being allowed to show the film at the festival was a significant achievement. >> translator: showing the film at the festival means it had the government's approval. i hope to show the film to chinese people at other occasions. the basic solution to all of life's problems is for people to take action for themselves. >> reporter: the government has high hopes for the shanghai festival. it is trying to promote the image of a modern and open culture but authorities face a dilemma. a platform for film can also become a stage for social activism, something authorities could not avoid. nhk world, shanghai. in the 70 days that tokyo sky tree has been open it has been stared at and photographed

from every angle, daytime, nighttime and in between. and yet there is always another picture to be taken. we caught up with a cameraman who has been waiting years for a shot that came into view over the weekend. >> reporter: professional photographers and snapshot seeking tourists can't get enough of the tallest broadcast tower. many have been making the pilgrimage to thecapital's newest landmark. for this man, the structure represents four years of his life. he started taking pictures as bobby 18 years ago and since 2008 the sky tree has rarely been out of his thoughts or his view finder. he has been watching and documenting its development since construction started. more than 10,000 photos later he is still not done.

>> translator: the shot differs. at sunrise it takes on an orange glow. at night it's lit up. it's always captivating. >> reporter: his devotion to the tower might be described as single minded. but he is more passionate about another subject, fireworks. he set a goal for himself to capture pyrotechniks in as many places as possible. this summer his infatuations came into alignment. >> translator: sky tree is the latest and greatest in technology. the fireworks festival will be right next to it. i want to capture it in the same frame. >> reporter: the fireworks will be launched west of the tower. he decides on two lotions where the costars of the show would compliment one another.

>> translator: the fireworks and the lights of sky tree give off different glows. that means i have to properly adjust the settings on my camera. >> reporter: location a had some drawbacks. >> translator: the trees are in the way. i could shoot from here but it's not ideal. >> reporter: so the inspection continued to lotion b. -- location b. >> translator: from here i think i can get the sky tree, the bridge in front of it and the fireworks all in one frame. those are good elements for a scenic shot. this is the place. >> reporter: he hopes this will be the winning shot. on the day of the show, hundreds of thousands of people arrive to claim their spot hours before the sun went down.

he also stakes a claim to his position. at 7:00 p.m., just as the first fireworks are launched. a storm of camera clicks on the ground rivalled the thunder rouous sounds coming from the sky. [ speaking foreign language ]ou sounds coming from the sky. [ speaking foreign language ]. >> reporter: halfway into the show he had yet to get the shot he wanted. each explosion became a make or break moment. [ speaking foreign language ]. >> reporter: mission accomplished.

>> translator: i'm happy i was able to shoot this first collaboration of the illuminated sky tree and the fireworks festival. but this is not the last time. i'll be back. >> reporter: he got what he came for. a port rat he can be satisfied with at least until next year. it's good that the weather cooperated there. we're keeping an eye on two powerful storms in the pacific. rachel ferguson gives us the details in her world weather forecast. >> this is a strong typhoon also a large system. you can see just how far reaching the influence of the winds are within this yellow circle here. a northern parts of the philippines still dealing with the strong winds. the wind speeds are 126

kilometers an hour with gusts up to 180. earlier in the week they were suffering with widespread flood from the heavy rain coming off this system. is it a powerful and intense system. right now sitting just to the south of taiwan. it looks like it will be moving at some point towards northern taiwan making a land fall here on thursday. beyond that it will be heading up in toward the southeastern coast of china. now, the winds here are generating waves up to 11 meters high for the okinawa region. this is a powerful system but not just the wind to worry about. there will be a lot of heavy rainfall. 500 millimeters plus for northern taiwan including taipei into the next three days. so extremely high likelihood of seeing flooding issues here,

landslides and mud slides possibly as well. this track of heavy rain moving up past japan and in toward the yellow sea, this is the other system. this is severe tropical storm danrey. as it heads into the yellow sea it should diminish becoming a weaker system but staying a severe tropical storm for the time being. heavy rain coming off this one too. we have these two storms in close proximity. it's a busy day and we'll be keeping you updated on this. up in the north of china, a strong band of heavy rain falling in the same place. it could bring 100 to 250 millimeters of rain. and this has been ongoing for the last several days. so the accumulations, the totals

are just ascending here following flooding and landslides. high risk here. to the south of the front we'll see more hot and dry conditions. shanghai, 34 degrees. through much of japan will stay mostly dry. popup thunderstorms caused by daytime heating and up in hokkaido a potential for heavy rain and warnings have been posted for that. in north america, messy in the east. a lot of storms. several frontal and low systems here. a lot of that is going to settle down during the course of wednesday as it pushes out to the atlantic. but still unsettled and stormy night tuesday on into wednesday. showers in the four corners with a potential for flash flooding and heat in the south. 42 in oklahoma city. that is not going to change in toward the end of the week. as we head into europe we have

this big system coming to the british isles. heavy rain for scotland and northern ireland but in london just a few showers, 24 degrees. not too bad. as we head into friday finally a clear day and sunshine with 20 degrees forecast for the high. here's your extended forecast.

before we go we want to show you some pictures of a century-old summer festival that begin in tsunami-hit city.

participants are mourning the victims of last year's disaster on march 11th. the ishinomaki or river opening festival traditionally celebrates the city's prosperity. but since last year, the festival has also been held to pray for the march 11th victims and the city's reconstruction. about 50 buddhist monks gathered at the mouth of the river. they also recited the names of residents who have died or remain missing. 15,000 paper lanterns with the names of victims were floated in the river. >> translator: i lost my aunt in the disaster. this festival brought up many emotions. >> translator: my mother hasn't been found yet. it's been two years. but it doesn't feel like much has changed.

>> people gathered along the banks and prayed silently. events will be held until wednesday on the theme of reconstruction to wrap-up the two-day festival.